Cramer recommends theme stocks to buy on the next market sell-off
CNBC’s Jim Cramer on Monday revealed a basket of stocks along more than a dozen investment themes he recommends investors keep their eye on for the next pullback in the stock market.
“I’m not looking for red-hot [stocks],” the “Mad Money” host said. “I want theme stocks that we can buy into weakness, because if the market sells off again because of regulatory risk, I need you to be ready.”
Cramer put together the watch list of more than 70 stocks across 15 market themes as the GameStop frenzy appeared to cool off after posting a 400% gain last week. Shares of the video game retailer tumbled almost 31% Monday, while the major averages got to a strong start in the first trading day of February.
The Dow Jones Industrial Average rose 229 points, closing at 30,211.91 for a 0.76% gain. The S&P 500 closed at 3,773.86, up 1.61% from Friday’s finish, and the Nasdaq Composite settled at 13,403.39, a 2.55% surge from last week.
Year to date, the blue-chip Dow is down more than 1%. The benchmark index is now positive on the year by about half a percentage point, and the tech-heavy Nasdaq is up 4%.
“With these 15 themes … I’m confident you can safely buy more the next time the market gets hammered,” Cramer said. “You now have your menu. There are a lot to choose from, so put some on your shopping list.”
Chip shortage
E-commerce
Reopening trade
Digitization
Cybersecurity
5G
Stimulus
China
Self-directed stock picking
Fintech
Health care
Electric vehicles
Remote work
Housing
Clean energy
Disclosure: Cramer’s charitable trust owns shares of Apple, Abbott Labs, Amazon, Broadcom, Boeing, Crown Castle, Salesforce, Disney, Facebook, Alphabet, Honeywell, Marvell Tech, Microsoft, Nike, Starbucks and Walmart.
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